Ergo Update

CBIC Issues Instructions for relaxing import of wireless equipment by Telecom Service Providers as an Ease of doing business initiative to overcome the long-standing Customs issues regarding imports

The Customs Tariff Act, 1975 (Act) was amended vide the Budget 2021 for the introduction of anti-absorption provisions with respect to anti-dumping (AD) and anti-subsidy (CVD) duties by inserting Section 9A (1B) and Section 9 (1B) respectively into the Act.

Related Parties (RP(s)) and Related Party Transactions (RPTs) form the cornerstone of most discussions involving corporate governance. Both the Ministry of Corporate Affairs (MCA) and the Securities Exchange Board of India (SEBI) have periodically discussed facets and parameters relating to RPs and RPTs, evident from the formation of committees such as the 2017 Kotak Committee on Corporate Governance and the ‘Report of the Working Group on Related Party Transactions’ dated 22 January 2020 (WG).

Within close to a year of initiation of its market study into the pharmaceutical sector, on 18 November 2021, the Competition Commission of India (CCI) released its findings in its report titled ‘Market Study on the Pharmaceutical Sector in India: Key Findings and Observations.

The Securities and Exchange Board of India (SEBI) has issued circulars dated 16 November 2021 (Ref: SEBI/HO/CFD/DIL2/CIR/P/2021/0000000657) and 18 November 2021 (Ref: SEBI/HO/CFD/DIL2/CIR/P/2021/0000000659 (hereinafter together referred to as “2021 Amendment Circulars”), amending certain provisions of the SEBI Master Circular dated 22 December 2020 (Ref: SEBI/HO/CFD/DIL1/CIR/P/2020/249) (Master Circular), which is a compilation of operational circulars issued by SEBI dealing with schemes of arrangement by listed entities.

The DGFT has called for representations from the industry players to the RoDTEP Committee constituted for fixation of RoDTEP rates for AA, SEZ and EOU exports and relating to any anomalies or errors in RoDTEP rates notified in the Appendix 4R.

A three-judge Bench of the Supreme Court of India (SC) in V. Nagarajan v. SKS Ispat and Power Ltd. & Others (judgment dated 22 October 2021 in Civil Appeal No. 3327 of 2020) dismissed an appeal against an order passed by the National Company Law Appellate Tribunal (NCLAT) which had dismissed an appeal against an order passed by the National Company Law Tribunal Chennai (NCLT) under the Insolvency and Bankruptcy Code, 2016 (IBC) as barred by limitation.

Last date for applications under various scrip-based schemes including MEIS and SEIS is 31 December 2021. The DGFT has reiterated that no late cut will be available, and all applications post 31 December 2021 will be time-barred. Therefore, all the qualifying exporters should file the applications before 31 December 2021.

Earlier in 2021, the Government of India issued the much-contested Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (Intermediary Rules), under the Information Technology Act, 2000 (IT Act) to regulate online platforms and digital media. These rules were laden with ambiguities and many stakeholders challenged the validity of the same across various courts in India. The Intermediary Rules set forth several due diligence requirements and grievance redressal obligations for such platforms, thereby increasing the regulatory burden in this sector.

On 27 October 2021, the Supreme Court of India (Supreme Court) ordered the constitution of a technical committee headed by a retired judge of the Supreme Court to probe into the alleged use of a spyware called Pegasus for surveillance of several citizens of India. The judgment is of particular importance as it addresses the larger impact of the use of surveillance technologies on the fundamental right to privacy, protection of data and freedom of the press, and the need to balance these rights against the security interests of the State.